Such operations process US$44m daily via 1,799 wallets, outpacing exchanges through six service types, including brokers and mules.
According to a crypto analytics firm’s research released in January 2026, Chinese-language money laundering networks (CMLNs) now handle about 20% of known illicit cryptocurrency funds, processing US$16.1bn in 2025 alone, or roughly US$44m daily across over 1,799 active wallets.
Compared to estimates in 2020, this is much faster than illicit inflows to centralized exchanges — fueled by cryptocurrency’s accessibility, and a shift away from exchanges that can freeze assets.
CMLN networks emerged during the pandemic and have scaled rapidly, outpacing decentralized finance and other on-chain flows. On-chain analysis identifies six service types:
- Running point brokers recruit individuals to forward funds via bank accounts or exchange deposits, bridging legitimate systems to crime proceeds from scams and hacks.
- Money mules layer funds through networks of accounts, using fiat-crypto conversions via ATMs, wallets, or cards, often with global reach into Africa.
- Informal Over-The-Counter services bypass controls with no Know-Your-Customer compliance, offering premium rates despite ties to illicit sources.
- Black U operations discount tainted crypto by 10-20% for buyers assuming risks.
- Gambling platforms enable layering via high-volume bets and crypto top-ups, sometimes with insider rigging for fixed outcomes.
- Money movement services provide mixing and swapping, prioritizing speed—large transfers clear in under two minutes for efficient types like Black U ops.
The illicit funds follow traditional phases: Black U and mules fragment large sums into small transactions (smurfing) to dodge detection, while brokers, OTCs, and gambling aggregate them for integration. High-value VIP transfers move fastest, revealing automation in some operations versus manual handling in others.
Guarantee platforms act as marketplaces and escrow hubs, connecting vendors without directly controlling flows, although enforcement has prompted migrations to other channels. US treasury sanctions on Prince Group and FinCEN rules on Huione highlight national security risks, but vendors adapt quickly.
The report by Chainalysis calls for public-private collaboration, blending blockchain tracing, open-source intelligence, and global upskilling to target operators over platforms. Without this, such networks remain resilient in laundering proceeds from scams, heists, and trafficking worldwide.
